The Russian market in laundry and cleaning services is on the verge of consolidation, which is reflected by a significant decline in the number of existing laundries and dry cleaners and their acquisition by larger players, according to a recent report from the Russian Ministry of Industry and Trade, a public agency, which oversees the development of the industry of cleaning services in the Russian government.
According to Denis Manturov, Russia's Minister of Industry and Trade, consolidation currently remains one of the most pressing problems for the industry, along with the ever-growing prices for the majority of cleaning services in Russia and the decline of consumer demand, caused by the ongoing stagnation of the Russian economy and the existing Western sanctions.
At present the majority of orders in the market are from corporate clients.
Marcel Khasanshin, head of Edna-Stroytorg, one of Russia's largest network of laundries, said that public institutions and state agencies account for about 80% of orders.
The remaining 15% of orders are from the private business, sector while the share of individuals in the total structure of orders is only 5%. This is contrary to the old Soviet times, when the majority of orders were accounted for by the the country's population.
INDUSTRY VIEW: Denis Manturov, Russia's Minister of Industry and Trade, said consolidation currently remains one of the most pressing problems for the industry